background gas, page-6

The following is my take on the latest announcement vis-a-vis the prior announcements along the way.

27/10/06 Alkali Gulch 12,490 feet - strong background gas mentioned but given the next announcement stated backgound gas increase 40 fold to 900 units - therefore BG at this level was at a maximum of 22.5 units.

31/10/06 Alkali Gulch - major gas interval 12,549-12,577 feet. The co announcements have been notorious for changing the depths of the formations in the table, but given the prior announcement the major gas interval was approx 300 feet into Alkali Gulch. The announcement stated background gas had increased 40 fold to 500-900 units.

1/11/06 Alkali Gulch 13014 feet

3/11/06 Cane Creek 13,150 feet

6/11/06 Cane Creek 13,720 feet - significant gas shows at 13,096-13,104 and 13,148-13,152 These occurred about 150 feet into the cane creek formation from what I can dechiper.

9/11/06 14,107 feet - cane creek

13/11/06 14,550 feet - pinkerton trail - company states that they are very confident of exploration and production potential of 'the area'.

15/11/06 14,985 feet pinkerton trail - importantly the company made no mention of the level (even existence) of background gas so it must have been pretty insignificant I would suggest.

20/11/06 Trading Halt

20/11/06 15,397 feet - pinkerton trail - significant gas shows at 15,292 to 15,322. Background gas increased to 800-900 units.

Long wait............. sue going on .........


16/04/07 Deep in the pinkerton trail at 15,531 feet - background gas creeping up to 40-90 units. Ann about on 27/11 stated strong BG at 23 units!! 2-4 times higher here.

19/04/07 Leadville encountered at 15,573 feet- drilled on to 15,756 feet and background gas increased to 100 units. 180 feet into the primary objective.

From the above announcements, some of the best shows have come well into the formation. eg 14,550 pinklerton trail encountered (give or take) and MAJOR shows at 15,300 feet. The leadville objective may be thicker than expected but with background gas at 100 and rising, prior experience in this well seems to highlight a MAJOR gas show not too far further down the hole. A 40 fold increase in BG to 4000 units - I'd like to see that prior to a big bang!!


Time will tell as it always does, but after such a long wait and with such a compelling set of announcements to date including $5.4 M placement during the troubles at 61c, I will stay the course for the rewards. The risk / reward play in this one is very strong IMO.

DYOR and good luck holders ... especially those that have survived everything that has been thrown at us including sue12...lol